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Charging tax for a freelance job 2018/5/22 16:55
Hi, I'm a full-time employee at a company in Tokyo while and I recently did a side illustration job for a different company.
I'm writing a billing statement for the illustration job, but I want to ask, do I charge for tax consumption and such? (税率, 消費税)

Thanks!
by Rin (guest)  

Re: Charging tax for a freelance job 2018/5/22 21:20
Every freelancer has the right to charge consumption tax (消費税). You also need to keep in mind the tax withholding (源泉徴収).

That said, usually your client gives you the details. What I mean is, usually in less than several weeks after your job is finished, they send you an email with every detail on how you should write your bill to them. Some companies have a weird calculation policy on how you should sum up your consumption tax.

But if anything about their offer is unclear, of course you have the right to ask.
by Uco rate this post as useful

Re: Charging tax for a freelance job 2018/5/22 23:00
you may add the tax in your bill. but, if your annual amount of sales is less than 10,000,000 yen, you may not add it, because you don't need to file about sales tax.

if you have an ordinary working status. I think you can't have a side job of self-employer without permission by immigration office. be careful.
by ken (guest) rate this post as useful

Re: Charging tax for a freelance job 2018/5/22 23:25
Uco is mixing up client work and working contract. There is no 源泉徴収 for a freelancer. If there is, he is an employee, not a freelancer.

A tax specialist says even if your annual sales is under 10 million, you should add consumer tax which is 8%. It's not banned and you must be paying expenses to complete the client work. These expenses include consumer tax naturally.
https://www.sumoviva.jp/trend-tips/20140327_133.html
by @_@ (guest) rate this post as useful

Re: Charging tax for a freelance job 2018/5/22 23:40
if you have an ordinary working status. I think you can't have a side job of self-employer without permission by immigration office. be careful.

If it's just a one-time gig, it should be fine under the exceptions in article 19-3 of 出入国管理及び難民認定法施行規則, but not if it's a regular thing...
by Firas rate this post as useful

Re: Charging tax for a freelance job 2018/5/23 12:35
Hi again,

Either way, ask your local tax office for details. In any case, what the tax office says will automatically be legal and proper.

I myself have triple-checked to the tax office, and as suggested, you don't have to pay consumption tax to the country if your annual amount of sales is less than 10 million yen, but you have the right to charge and obtain consumption tax for the work you did.

Uco is mixing up client work and working contract. There is no 源泉徴収 for a freelancer. If there is, he is an employee, not a freelancer.

Maybe I didn't have the English terms correctly, but according to the tax office as well as my クライアントたち, I am フリーランス and a 個人事業主 and I get 源泉徴収 for the work I do for various companies. That's how it's been for decades for me as well as for my friends in the industry. Just clarifying.
by Uco rate this post as useful

Re: Charging tax for a freelance job 2018/5/23 16:07
I get 源泉徴収 for the work I do for various companies.

I realize that this part may have been the reason for our misunderstanding. 源泉 is deducted from my earnings. And then, by the way, I get it back at the end of the fiscal year if my 所得 is low enough.

Meanwhile, in some cases (such as if the client is another freelance translator with no employees), 源泉 is not deducted. That's why I mentioned the importance to keep 源泉 in mind. I'm sorry if that had caused any confusion for anyone.
by Uco rate this post as useful

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